Campbell to Acquire Pacific Foods to Expand in Faster-Growing Health
and Well-Being Categories

CAMDEN, N.J.--(EON: Enhanced Online News)--Campbell Soup Company (NYSE:CPB) today announced it has entered
into an agreement to acquire Pacific Foods of Oregon for $700 million in
cash. Founded in 1987, Pacific Foods is a leading producer of organic
broth and soup,1 and also produces shelf-stable plant-based
beverages and other meals and sides. Pacific Foods has a sustained track
record of growth, and generated approximately $218 million in trailing
twelve month net sales as of May 31, 2017.

“Real food
that matters for life’s moments.”

Pacific Foods is a natural foods industry pioneer that has strong health
and well-being and organic credentials, particularly with younger
consumers. Its products and approach are very closely aligned with
Campbell’s real food philosophy. Pacific Foods will help accelerate
Campbell’s efforts to deliver real food and beverages that meet
consumers’ changing tastes and preferences. The acquisition will also
further Campbell’s efforts to drive innovation in health and well-being
to reinvent the center store, while giving the company more access to
natural and organic customers and channels.

Organic food is a more than $11 billion category in the U.S., which grew
at a compound annual growth rate of 15.3 percent over the past four
years.2

Denise Morrison, Campbell’s President and Chief Executive Officer, said,
“This acquisition is consistent with our Purpose, ‘Real food that
matters for life’s moments.’ Pacific is an authentic brand with a
loyal consumer following. The acquisition allows us to expand into
faster-growing spaces such as organic and functional food. Moreover,
Pacific Foods is an excellent fit with Campbell — strategically,
culturally and philosophically. It advances our strategic imperatives
around real food, transparency, sustainability and health and
well-being. Culturally, Campbell and Pacific Foods share similar values
and a commitment to a purpose-driven approach. Philosophically, both
companies believe in making food that we are proud to serve at our own
tables using simple, recognizable ingredients.”

Campbell plans to bring its expertise and scale to Pacific Foods and
invest in the business to drive full force growth. Campbell expects to
expand distribution; boost marketing support for brand building to
engage consumers and shoppers; and invest in R&D and the supply chain to
deliver operations and customer service excellence.

Pacific Foods will become part of Campbell’s Americas Simple Meals and
Beverages division, which includes Campbell’s soup, simple meals and
shelf-stable beverage units in the U.S., Canada and Latin America. The
division is led by Mark Alexander, President, and includes many leading
brands including Campbell’s, V8,Swanson, Prego, Pace and Plum
Organics.

Founded in 1987 in Tualatin, Ore., Pacific Foods has approximately 540
employees and operates a certified organic plant where it produces its
namesake products. Campbell plans to continue to operate Pacific Foods
out of Tualatin. The company will maintain its farm-to-table approach
with CEO and co-founder Chuck Eggert staying on as a supplier of key
ingredients through his family farms.

Eggert said, "We've spent the past 30 years focused on making nourishing
foods with an emphasis on simple, organic ingredients and authentic,
rich flavors. Looking ahead, a future with Campbell means we can
maintain what we value while accelerating growth of the brand in a way
that we couldn't do alone, reaching more people while increasing our
impact on sustainable agriculture."

This is Campbell’s fifth acquisition in five years as the company
continues to reshape its portfolio for growth. The company acquired
Bolthouse Farms in 2012, organic baby-food company Plum and biscuit
company Kelsen in 2013, and fresh salsa and hummus maker Garden Fresh
Gourmet in 2015. This acquisition is the latest in a series of moves
Campbell has made to diversify its portfolio in response to increased
consumer interest in health and well-being.

Campbell plans to fund the acquisition through a combination of short-
and long-term debt, and the acquisition is not subject to any financing
condition. The closing of the transaction is subject to regulatory
approvals and customary closing conditions. Campbell expects the
acquisition to be neutral to earnings in the first 12 months following
closing, excluding certain purchase accounting adjustments, and
transaction and integration costs.

Pepper Hamilton LLP and Jones Day acted as Campbell's legal counsels.
Pacific Foods was advised by The Rondout Group and Tonkon Torp LLP acted
as legal counsel.

About Campbell Soup Company

Campbell (NYSE:CPB) is driven and inspired by our Purpose, “Real food
that matters for life’s moments.” We make a range of high-quality soups
and simple meals, beverages, snacks and packaged fresh foods. For
generations, people have trusted Campbell to provide authentic,
flavorful and readily available foods and beverages that connect them to
each other, to warm memories and to what’s important today. Led by our
iconic Campbell’s brand, our portfolio includes Pepperidge
Farm, Bolthouse Farms, Arnott’s, V8, Swanson, Pace, Prego, Plum, Royal
Dansk, Kjeldsens and Garden Fresh Gourmet. Founded in 1869,
Campbell has a heritage of giving back and acting as a good steward of
the planet’s natural resources. The company is a member of the Standard
& Poor’s 500 and the Dow Jones Sustainability Indexes. For more
information, visit www.campbellsoupcompany.com
or follow company news on Twitter via @CampbellSoupCo.
To learn more about how we make our food and the choices behind the
ingredients we use, visit www.whatsinmyfood.com.

About Pacific Foods

Founded in 1987 in Tualatin, Ore., Pacific Foods is dedicated to
sourcing simple ingredients cultivated through sustainable practices,
making products that nourish, and increasing access to healthy,
wholesome foods. It offers a wide variety of organic products, including
flavorful soups, sauces, broths and stocks, as well as the broadest
range of non-dairy beverages and a growing collection of dips, meals and
sides. Pacific’s delicious, nutritious foods are inspired by traditional
recipes made convenient for busy, health-conscious consumers. The
company’s products are sold throughout the U.S. and Canada in mainstream
grocery and natural food stores. For more information, visit www.pacificfoods.com.

Forward-Looking Statements

This release contains “forward-looking statements” that reflect
Campbell’s current expectations about the impact of its future plans and
performance, including the acquisition of Pacific Foods, on Campbell’s
business or financial results. These forward-looking statements rely on
a number of assumptions and estimates that could be inaccurate and which
are subject to risks and uncertainties. The factors that could cause
Campbell’s actual results to vary materially from those anticipated or
expressed in any forward-looking statement include (1) the Pacific Foods
acquisition may not close, or the closing may be delayed, due to any
number of factors, including closing conditions not being satisfied,
regulatory approvals not being obtained on the terms expected (or at
all), or litigation related to the acquisition; (2) the possibility that
in order to achieve regulatory approvals, Campbell may be required to
modify aspects of the Pacific Foods acquisition or to accept conditions
that could adversely affect the expected benefits of the Pacific Foods
acquisition; (3) Campbell may otherwise be unable to achieve the
anticipated benefits of the Pacific Foods acquisition; (4) Campbell may
not be able to integrate the Pacific Foods business and operations in a
timely and cost-efficient manner; (5) revenues or other operating
results following the Pacific Foods acquisition may be lower than
expected; (6) operating costs, customer loss, and business disruption
(including, without limitation, difficulties in maintaining
relationships with employees, customers, and suppliers) may be greater
than expected in connection with the announcement or closing of the
Pacific Foods acquisition; (7) Campbell may assume unexpected risks and
liabilities in the Pacific Foods acquisition; (8) completing the Pacific
Foods acquisition may distract Campbell’s management from other
important matters; and (9) the other factors described in Campbell’s
most recent Form 10-K and subsequent Securities and Exchange Commission
filings. Forward-looking statements speak only as of the date made.
Campbell disclaims any obligation or intent to update the
forward-looking statements in order to reflect events or circumstances
after the date of this release.

CAMDEN, N.J.--(EON: Enhanced Online News)--Campbell Soup Company (NYSE:CPB) today announced that Denise M. Morrison, President and Chief Executive Officer (CEO) and a Director, has chosen to retire... more »